Experienced investors sometimes use a Loan Against Mutual Funds (LAMF) to leverage higher returns. A common strategy involves borrowing against debt funds at 9–10% interest and reinvesting into high-growth equity funds aiming for 15–18% returns, generating a 5–8% potential spread. For instance, a ₹10 lakh debt portfolio may support a ₹7 lakh equity allocation through leverage. However, sharp market corrections can trigger margin calls and dual losses. Experts advise keeping leverage below 30% and maintaining cash reserves for volatility.